Daily Strategy: AWS Maintains Oil-Play and Eyes Stocks Benefiting from Stimulus Plan

Stock markets in Asia traded in a mixed session on Tuesday, following a surge in Wall Street last night in the light that the U.S. inflation would ease in 2022.


Thailand’s SET Index opened at 1,659.04 points, increased 10.23 points or 0.62%.

Stock exchanges in China, Hong Kong, South Korea and Singapore are closed for a holiday. Meanwhile, Japan’s Nikkei rose 0.71%, Indonesia’s IDX Composite slipped 0.22% and Taiwan Weighted dipped 0.15%.


Asia Wealth Securities (AWS) stated that it expects the SET to move within the range of 1,640-1,655 and continue to have strong buybacks in stocks with specific positive factors for both stocks in the group of oil play that still have positive factors from the rising crude oil price. AWS chose PTTEP and SPRC as the top picks, and stocks that benefit from higher domestic purchasing power from a positive outlook on the overall economy of the Bank of Thailand and the Ministry of Industry, including economic stimulus measures.

Today (1 Feb) will be the start date to confirm the exercise of the phase 4 of half-half co-payment (for those who originally received the rights) for 27.98 million people, who will receive support for the amount of goods or services that the amount is set at a rate of 50%, but not more than Bt150 per person per day with no more than Bt1,200 per person throughout the project period between 1 Feb – 30 Apr 2022. For those who have never joined the phase 3 of half-half copayment, it is allowed to register on 10 Feb 2022 until 1 million rights are reached (starting spending on the first day on 17 Feb 2022). Moreover, the approval of the phase 4 of the We Travel Together project will positively affect tourism, consumer goods, retail, ICT and transport.

AWS picked CRC, CPN, HMRPO, BEM, ADVANC, AOT, BAFS, AAV, SHR, CENTEL and ERW, including those that benefited from the upward interest rate such as BLA, BBL and KBANK.

However, it is the issue to be followed in the ECB and BoE meetings (3 Feb), as well as the minutes of the latest Fed meeting which is released on 18 Feb for signs of monetary policy action for the remainder of 2022.